5 Benefits of Electronic Signature For Your Organization
Electronic Signature Software
The use of electronic signatures has become an integral part of doing business today.
Electronic signatures not only give organizations the ability to execute legally binding documents in minutes, but they also provide a variety of other benefits, from saving money to minimizing the environmental impact of doing business.
This article explores all you need to know about the benefits of electronic signatures for organizations of all sizes.
What are electronic signatures and how are they used?
Electronic signatures, also known as e-signatures, are an electronic representation of an individual’s name attached to a document demonstrating their agreement.
Electronic signatures are recognized legally in the United States thanks to the United States Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA).
They are commonly used for signing legal contracts and agreements, but can be used for any document where a signature is necessary.
In recent years, the use of electronic signatures has grown especially since the onset of the Covid-19 pandemic. In 2021, electronic signatures saw a 34.4% increase globally, and the number is expected to grow exponentially between 2022 and 2029 as more businesses embrace the evolution of technological advancement.
Switching to electronic signatures offers countless benefits and conveniences for your organization and clients. Below are a few of these advantages.
5 Electronic Signature Benefits Every Organization Should Know
They Save Time and Reduce Errors
One of the most significant benefits of using electronic signatures for organizations is that they save time.
With electronic signatures, businesses can quickly send documents out for signature to their clients and partners, reducing the time spent printing, scanning, faxing, and mailing documents.
Electronic signatures also enable businesses to get their signed documents back faster. In fact, companies on average have seen an 80% faster turnaround time using electronic signatures (FinancesOnline).
In addition, electronic signatures reduce administrative time and error rates by 80%.
They are Convenient and Flexible
With virtual work and remote operations on the rise, many businesses are utilizing electronic signature software to allow clients and business partners to sign documents from anywhere, at any time.
Electronic signatures are also accessible from any computer, tablet, or mobile device, making it convenient and easy for clients to sign documents on the go.
Businesses Can Easily Keep Track of Signatures
Another significant benefit of using electronic signatures is organizations can easily keep track of the status of all their documents out for signature.
Using electronic signature software with features such as signing dashboards, notifications, and reminders, businesses can maintain control and visibility of all their signature workflows.
For example, they can see all outstanding and completed sales contracts, human resource forms, purchase orders, invoices, NDAs, and more. If a document hasn’t been signed yet, automatic reminders can be scheduled to help keep the workflow moving smoothly.
This eliminates the time spent tracking down signatures manually and can be especially helpful for organizations with multiple signature workflows happening simultaneously.
They're cost-saving and environmentally friendly
With traditional signatures, businesses have to print out documents and deliver them by hand or mail to be signed. Printing and shipping can be costly, especially if an organization needs to send documents internationally. With electronic signatures, businesses can execute 100% paperless, legally binding documents for signature from anywhere. This can save thousands of dollars on paper and mailing supplies while also demonstrating a brand's commitment to the environment.
They’re More Secure
By physically sending confidential documents to external signers, a business may be putting their most sensitive documents and information at risk of unauthorized access.
Electronic signatures contain traceable data that can be sourced back to the person who signed the document, and can show when they signed it, and from where.
For enhanced protection, many electronic signature solutions offer an audit log that provides a time-stamped report of all signature activities which can be emailed weekly to account administrators.
Additionally, many electronic signature software solutions include cloud storage options that offer extensive security measures, allowing all signed documents to be securely stored and accessible at any time.
Electronic signatures offer many benefits to businesses of all sizes.